JKCE reported consolidated EBITDA of INR4.1b vs. estimated INR3.7b in 1QFY24, primarily led by higher other operating income. EBITDA/t stood at INR881 (est. INR802) and adj. PAT was at INR1.24b (est. INR1.17b). Central India plant’s utilization increased to ~75% in 1QFY24 and has started generating EBITDA/t closer to the company’s average level of grey cement business. Profitability of this plant will further improve with the stabilization of WHRS by 3QFY24 and an increase in AFR usage.
OutlookWe largely maintain our FY24/FY25 EBITDA estimates. We prefer JKCE for its steady expansion and better execution compared to peers. We maintain BUY with a TP of INR3,600, valued at 14x FY25E EV/EBITDA.
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